Demolition Equipment Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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Though the industry’s performance was inconsistent due to a contracting housing market in the past five years, it is expected to return to stellar growth, partly driven by exports to emerging markets. For these reasons, industry research firm IBISWorld has added a report on the Demolition Equipment Manufacturing industry in its growing industry report collection.

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Improved construction markets will support demand for demolition equipment.

The Demolition Equipment Manufacturing industry has performed inconsistently during the past five years. The industry's performance is closely tied to the construction market, as property developments often involve demolishing existing buildings and structures and cleaning up sites to make way for new construction. According to IBISWorld Industry Analyst Dmitry Diment, “During the recession, the collapse of the real estate market crippled the construction and demolition markets, causing downstream construction industries to purchase less demolition equipment.” International markets also suffered from declining confidence, causing the value of exports to fall dramatically in 2009. However, export markets were quick to rebound, assisting rapid industry recovery. In addition, countercyclical funding from the public sector for infrastructure renovation and construction, coupled with recovering demand for residential and commercial construction, helped propel demand for demolition equipment. As a result, industry revenue is expected to increase on average in the five years to 2014.

Exports make up a vital market for domestic manufacturers. US operators like Caterpillar and Terex, for example, have expanded heavily into emerging markets in Asia, Latin America and Eastern Europe. From 2009 to 2012, exports resumed stellar growth as demand for demolition machinery is expected to rebound strongly in emerging markets. However, a downturn in demand for US manufactured demolition equipment on account of a strengthening US dollar and stronger competition from international manufacturers has negatively impacted export revenue since 2013. Although exports are estimated to increase over the five-year period, they are expected to fall for a second straight year in 2014. Consequently, industry revenue is expected to decline in 2014.

Improving economic conditions and rising construction activity will encourage companies to invest in new machinery and equipment moving forward. Nonresidential construction is set to grow over the five years to 2019, while the number of housing starts is projected to increase during the same period. “These trends will likely result in a corresponding rise in demand for demolition and demolition equipment, driving industry growth,” says Diment.

For more information, visit IBISWorld’s Demolition Equipment Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

This industry manufactures machinery and attachments for the destruction and removal of buildings and other structures. Industry products include backhoes, breakers, buckets, clamshells, cranes, dozers, excavators, forklifts, grapples, hammers, hoe rams and shears. Products are segmented among three major groups: vehicles and machines; equipment; and separately sold parts and attachments.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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